Synopsis of Muthoot Two Wheeler Loan
- Two wheeler loan of up to 100%* of on-road price
- Special two wheeler finance schemes to suit your needs
- Low interest rate at 0.99% with no hidden charges
- Flexible repayment option with maximum loan tenure of up to 48 months
- Easy and simple documentation with fast approval
Muthoot two-wheeler loans provide you with up to 95% road funding in comparison to other financial institutions like public sector banks and private sector banks.
For example, if you approach Punjab National Bank or Kotak Mahindra Bank, they will offer you 80 to 90% of the sum of the ex-showroom price plus one-time road tax or RTO fees plus a one-year insurance fee.
To get more details on it, you can read our detailed guide on the Punjab National Bank two-wheeler loan.
But you are here to learn about Muthoot two-wheeler loans. So let’s get started.
Brief about Muthoot Finance Ltd
Muthoot Finance Ltd. is an Indian financial corporation and the largest gold loan NBFC in the country. Muthoot two-wheeler loans are provided through Muthoot capital and Muthoot money. The share price as of September 22, 2023, of Muthoot Finance is Rs. 1265.
Quick snapshot of Muthoot Two Wheeler Loan
| Two Wheeler Loan Interest Rates | 4.99% for ladies 6.99% for Salaried person |
| Loan Amount | Up to ₹ 3 Lakh |
| Loan Processing Fees | Up to 4% plus applicable taxes |
| Lowest EMI per month | Starting from ₹ 2996 per Lakh for 36 months |
| Loan Tenure | Up to 20 months |
| Maximum Repayment Tenure | Up to 48 Months |
| Late Payment Charges | 2% per month |
| Cheque Bounce Charges | ₹500 per bounce plus applicable taxes |
| Stamp Duty | At actuals (as per state) |
| No Other Hidden Charges | |
Muthoot Capital claims on its website that the best part about its two-wheeler loan is that collateral is not required, but let me tell you that collateral is not required in two-wheeler loans.
Instead of collateral, there is a concept of hypothecation in banks and NBFCs. Hypothecation means the vehicle will be in the possession of the borrower, but it will be registered in the name of both the financer and the borrower.
For example, if you purchased a two-wheeler on finance through Muthoot Capitals, then your registration certification will also bear the name Muthoot Capitals. And this type of registration is known as joint RC.
Process of Muthoot Two Wheeler Loan
The process of availing a loan for a bike or scooter from Muthoot Capitals and Muthoot Money is very easy and fast. All the process is done online (instant bike loan) and hassle-free, with very little paperwork.
Muthoot Two Wheeler Loan Types
Muthoot Capital Services Ltd. offers you two types of bike and scooter loans: no-income-based loans and income-based loans.
No Income Based Loans
Under a no-income-based loan, there is no requirement for income proof to avail of a two-wheel loan. That’s why this scheme is called no-income-based. And I think this option is really good, both for salaried people and for non-salaried people. The interest rate depends on the credit history, and a low rate of interest will also attract a low repayment tenure.
For example, if anyone avails of a bike loan of Rs. 50000 at a rate of interest of 6.99%, then the repayment period will be 36 months. So the EMI will be Rs. 1544 and the total interest charged during the 36 months will be approximately Rs. 5570.
On the other hand, if someone takes a bike loan from any other public or private sector bank of the same amount, the approximate rate of interest that will be charged is 12 to 12.50%. So the EMI will be 1112. But the total interest charged during the repayment period will be Rs. 16733.
So we can say that the Muthoot two wheeler loan interest rate is cheaper than that of public or private sector banks. Here is the table of comparisons.
Example of Interest rate charged
| Parameters | Muthoot Capital | Banks (Public/Pvt) |
|---|---|---|
| Loan Amount | 50,000 | 50,000 |
| ROI charged | Max. 6.99% | Max 12.50% |
| Repayment Period | 36 months | 60 months |
| Estimated EMI | 1544 | 1112 |
| Total Interest charged | 5570 | 16733 |
Income Based Loans
If you have a permanent monthly source of income, either by salary, business, or self-employment, you can go with this option.
Schemes of Muthoot Two Wheeler Loan for different class of people
| Class | Rate of Interest |
|---|---|
| Women | 4.99% |
| Salaried Professionals | 6.99% |
| Government Employees | 6.99% |
Interest Rate on Muthoot Two-Wheeler Loan
The interest rate depends on various factors. For example
- The vehicle you are selecting determines the rate of interest. Mopeds will attract low interest, whereas Super Bikes will attract a high rate of interest.
- If you have a steady and credible source of income (a salaried class), then the rate of interest is low for you as compared to a non-salaried class.
- The last factor is repayment capacity. Lowering the months of repayment will attract a higher amount of EMI.
Eligibility for Loan
Must be Resident of India
If you are a salaried person, then your annual income must be Rs. 96,000 (or Rs. 8,000 monthly) and above.
If you are a self-employed individual, then your annual income must be Rs. 1,20,000 (or Rs. 10,000 monthly and above).
The minimum age is 18 years, and the maximum age is 65.
Paperwork or Documents required for loan
- Valid Identity Proof: Any one of passport/ Aadhaar card/ Voters ID card/ Driving License/ PAN Card
- Income Proof: Last 2 years ITR/ Form 16/ Pay Slip/ Bank account statement
- Asset Proof: Latest land/ Building/ House tax receipt
- Valid Address Proof: Any one of passport / Aadhaar card / voters ID card / driving license / telephone bill / electricity bill / gas connection bills / ration card/ LIC policy
- Photo Proof: Recent passport size photo
Charges for Two Wheeler Loan Process
Document Charges
In public sector banks like the State Bank of India, PNB, etc., the document charges are to be paid after the sanction of the loan amount or before the disbursement of the loan amount, but in Muthoot Capitals, the document charges are mandatory to be paid before the loan is sanctioned.
Foreclosure Fees
This fee represents the amount that has to be paid by the borrower if he or she pays the entire loan amount before the due date. In public-sector banks, there will be no foreclosure fees if the borrower has paid the loan amount with his own funds.
But in Muthoot Capitals, these fees are mandatory. Suppose you avail the bike loan for 3 years, but after 2 years you have some extra funds and you want to pay your full and final outstanding amount of the loan. Then you have to also pay foreclosure fees.
Processing Charges
At Muthoot Capitals, the processing fees vary from 1 to 4% of the loan amount. Further, in PSU and PVT banks, these fees will be paid after sanctioning the loan, but in Muthoot at the time of application. Your application will be processed only after you pay the processing charges.
Hidden Terms and Conditions
- Some charges will be applied over the interest rates charged on the specific loan amount like the foreclosure, processing and documentation fee
- The interest will be paid on the principal amount and the loan must be paid in the form of an EMI’s
- The loan amount will be disbursed for a particular tenure and specific interest rates will be charged
- The maximum repayment tenure is set to be 48 months by Muthoot Capital and some nominal foreclosure charges will be applied if the loan is closed before the due date
What is Muthoot Two-Wheeler Insurance?
When you avail a bike or scooter loan from any bank, the insurance of the vehicle is mandatory. This includes 1 year of full, comprehensive insurance. Third-party liability coverage is also important. The financial name in the insurance policy is mandatory.
Banks give you the option and freedom to insure your financed vehicle from any insurance company at the time of purchase or within 30 days of purchase, but if you do not submit the insurance copy to the bank after 30 days of purchase, then the bank has the right to debit your account for the insurance premium.
How do I get a Muthoot two-wheeler loan NOC?
After the submission of the full and final outstanding amount to Muthoot Capitals, you have to submit the account closure application along with your loan account statement, which shows the zero amount outstanding.
This application is not mandatory, but it will become a mandatory document whenever there is a delay at the end of the financer issuing you an NOC or NDC (No Dues Certificate).
The bank will issue you an NOC or NDC along with Form 35. Form 35 is used to terminate the hypothecation clause in your RC vehicle.
What is Muthoot two wheeler loan contact number?
1800 102 1616
